Amazon Goes Nuts For Sqrrl (And Buys Them)

A month after rumors swirled that Amazon was seeking to acquire Massachusetts-based cybersecurity startup Sqrrl, the deal has come to fruition, according to BostInno.

The Information reported that Amazon Web Services (AWS) has acquired Sqrrl, according to multiple sources familiar with the deal. Terms of the acquisition have not been made public, although the rumored buy price in December was in the neighborhood of $40 million.

Spokespeople for Sqrrl and Amazon did not immediately respond to a request for comment from BostInno on Tuesday (Jan. 23).

Founded by Natural Security Agency (NSA) alumni in 2012, Sqrrl offers software that analyzes big data streams to pinpoint and expose cyberthreats. The firm has brought in around $28.5 million in venture funding, with investments from Accomplice, Matrix Partners, Rally Ventures and Spring Lake Equity Partners.

News of the Sqrrl acquisition comes a year after AWS reportedly acquired Harvest.ai, a cybersecurity startup based in San Diego. According to a GeekWire report citing Fred Wang – a general partner with Trinity Ventures, which is an investor in Harvest.ai – AWS quietly acquired the company to increase the security of its cloud offering for its customers. Wang said AWS acquired the company early in 2016 and has invested a little under $2 million in the startup.

And, in December, Amazon inked a deal to acquire Blink, the wireless security camera company that launched in early 2016. The move could be part of its strategy to push into the smart home and connected security markets. In late 2017, Amazon launched a video camera that lets consumers view deliveries that are being placed in their homes.

With its Echo devices, which are powered by its voice-activated digital assistant, Alexa, Amazon is trying to control the smart home, where all sorts of internet-connected devices communicate with each other. While the Echo is widely popular, some industry watchers have said there is limited use for smart speakers without the connected home market taking off.